Growth potential does not justify current valuation of the off-price apparel and home fashions retailer, analysts said.
"The stock is currently trading above its historic multiples at 18x our C2015 EPS estimate and 10x C2015E EV/EBITDA. We think this is unwarranted given our below-consensus near-term estimates and our outlook for growth to decelerate over the long term," analysts said.
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"Our C2014 estimate of $3.12 is 5 cents below consensus and our C2015 projection of $3.49 is 7 cents shy of expectations," analysts added.
Separately, TheStreet Ratings team rates TJX COMPANIES INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TJX COMPANIES INC (TJX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."